Key Management Capabilities Required to be an Effective Manager

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Key Management Capabilities Required to be an Effective Manager

Key Management Capabilities Required to be an Effective Manager: A Focus on Moana New Zealand and Tauhara North No.2 Trust


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The abilities through which leaders and managers develop, combine, and restructure the firm’s assets and competencies are referred to as management capabilities. Leaders and managers can use these talents to confront their surroundings, enhance the effectiveness of their organizations, and sustain and build competitiveness (Brito & Sauan, 2016). Managers must use their skills to build organizational and strategic procedures that result in more innovation and growth for their companies. Innovation processes necessitate senior management teams using their management skills to correctly assign and disperse the company’s resources and operations. This paper will determine and critically analyse the main management skills needed to be a successful manager in two selected organizations. Two capability frameworks will be used in identifying the critical capabilities for the two organizations. One of the organisations selected are Tauhara North no. 2 trust which is based in Taupo, Waikato, New Zealand. The firm is a financial institution that provides programmes and grants for the whanau in distinct areas of life but particularly, education and health where is really needed. The other organization is Moana New Zealand. The organization is the largest seafood firm that is owned by the Māori. The company manages the economic fisheries resources that Māori were awarded as part of the Treaty of Waitangi Fisheries Settlement with the Crown, the New Zealand government.

Key Management Capabilities Required to be an Effective Manager

In order to highlight the key management capabilities required to be an effective manager, the two capability frameworks is applied. In the first framework, it can be viewed as a flow of causation from left to right. For Moana New Zealand and Tauhara North No.2 Trust, the first framework has the benefit of having a high validity and reliability, that is, it seems rational that proper management will lead to improved individual as well as the organizational performance, and that management abilities might be developed. The premise at the core of the framework is that there is a link between managerial capability and the training and development that managers get, via both formal schooling, such as business education courses, and also more unstructured training and development. The premise on the other end of the framework is that enhanced capacity leads to enhanced individual performance, which translates to improved organizational advantages. For Moana New Zealand and Tauhara North No.2 Trust, this framework defines the behaviour, knowledge and skills that the management, the shareholders, and the employees use to succeed. It provides a common language to allow better communication for Moana New Zealand and Tauhara North No.2 Trust to communicate across various teams.

As a result, the framework includes a variety of indicators that aim to quantify not only ‘managerial skill,’ but also the causes that affect it and the advantages that may result. For example, Moana New Zealand has an environmental structure and management requirements that demand excellence in relations and communications. For Tauhara North No.2 Trust, a deep culture founded on the Maori principles easily allows better communication and shared goals amongst the employees. The set of capabilities that the framework emphasizes are education and qualifications, ongoing training and development, experience and management rules and systems.

In the second framework, it outlines four competence categories, each with a set of characteristics for desired behaviour. Hiring, skill evaluation, and leadership development ought to all be based on these competencies. For Moana New Zealand and Tauhara North No.2 Trust, these competencies are used in conjunction with the appropriate professional development. The emphasis of this framework is on persons in management and leadership roles, an aspect that Moana New Zealand focuses on. The capabilities are created to be applied to all management levels. Some characteristics might be a little more relevant depending on the style of leadership required by the post. The challenges in achieving the capabilities will be shaped by the setting wherein the leader or manager operates. Personal traits, leading change, collaborating with colleagues, and individuals and services management are among the capabilities.

Tauhara North no. 2

In a more specific view of the two capability frameworks, the most important capabilities for Tauhara North no. 2 trust are personal qualities to deal with people since it is a humanitarian organization and experience since experienced managers are undoubtedly the best for organizational management.

Personal Qualities

Companies nowadays place a higher value on personal skills like listening, flexibility, and encouraging open communication. The higher-level features of manager success, including as developing trust, demonstrating compassion, assuming responsibility, and engaging in employee training and development, are enhanced by these personal qualities (Dler & Tawfeq, 2021).  Open communication is a key generator of culture. Workers feel like true partners in the firm when executives communicate honestly and authentically with them – and as a consequence, they feel more engaged. They are also much more inclined to support the organization, even if they do not even concur with all of the choices. Worker engagement rises as a result of this sense of worth. Managers that are good communicators are in high demand. They communicate effectively with their staff and actively listen and comprehend what is truly going on within the company.

Loyalty as well as performance among employees are enhanced by having supervisors that are good listeners who are actually concerned about their employees’ worries. According to past survey, 61% of workers felt that trust between top management and staff was a major factor in job satisfaction. When it comes to what makes a successful manager, promoting a great organizational climate begins with building and retaining trust with the staff. Workers who believe they could trust their boss are more likely to trust manager’s judgments and to be committed to the company’s core mission and aspirations (Kohail et al, 2016). Leaders that fail to cultivate trust risk losing their workers’ respect, which can have a negative impact on productivity, commitment, and eventually employee attrition.

Compassion, a key component of emotional intelligence, necessitates managers making personal connections with their staff. When it comes to shortlisting manager qualities, empathy fosters more than just a healthy employee-management connection; it also has a favourable effect on culture within the workplace. Empathetic supervisors are better at leading people with distinct perspectives to work together successfully.


Managers, without a doubt, improve their skills and talents in less formal settings than they do via official schooling, training, or development. Learning from job challenges or mentors has been proven in a number of qualitative research to be an important factor in influencing managerial behaviour. Tenure in key roles or experience working in successful organizations could all contribute to such development via experience. Regardless of whether experience is assessed as organizational tenure, length of employment, or years of experience at a specific site, the nature of the connection between experience duration and performance is usually often at times congruent (Azad et al., 2020). Managers with greater organizational tenure may, for example, display a higher level of performance than those with less service. According to prior study, experience on a particular job, rather than generic experience in a subject, experience on relevant past jobs, or experience in work environments, improves workers’ productivity since it allows them to gain job knowledge and abilities.

Human capital theory proponents say that when management teams gain more experience in their early careers, they gain a better understanding of management. For example, managers with more experience understand what it takes one to boost sales and make a profit. Experience is particularly important for managers who have worked on a global scale. Changing one’s perceptions will help the individual become a better boss. Managers enhance their capacity to draw conclusions differently as a result of tapping on multinational experience. Great managers make sense of situations by drawing on their foreign expertise. Great managers utilize their interest and the attitude of being provided with a learning experience when confronted with something they do not even comprehend, and they resist making early judgments or attributing preconceptions to the unfamiliar. Rather, they rely on their cultural understanding and ability for seeing things from a different perspective, which comes from years of experience in the position.

Moana New Zealand

For Moana New Zealand, the best capabilities that the managers ought to have is leading change and training and development as organizations continuously change and it is also vital to develop new skills for managers.

Ongoing training and development

The issue of continual training and development is tightly linked to the first input. This could involve coursework for certifications that, once earned, will be included in data on educational and qualification levels, but it could also encompass far brief durations of training and development (Ruiz-Jiménez & Mar Fuentes-Fuentes, 2016). It would encompass both official, off-the-job training and development as well as casual, on-the-job development.  With the rise of e-learning as well as other innovations that can provide education to the computer in tiny, easily digestible chunks, and the escalating development integration inside the workplace, the latter is becoming increasingly important. It is indeed critical to keep learning and developing new talents, regardless of the level of experience. As one’s career progresses, s/he will need to collaborate effectively with others, gain in – depth industry experience, keep pace with advances in technology, and finally manage everyone else. The core objective of a manager is to be a successful implementer- an individual who organizes people’ activities to achieve company objectives. Managers are responsible for a variety of everyday activities, although their primary goal is getting things accomplished and through people. The capability to coach and guide personnel is a facet of management that is often overlooked. Despite the fact that 78 percent of the population believe having managerial mentors in the workplace is crucial, just 37% of professionals say they have one, implying that extending professional management courses is more vital than ever before.

Almost every business will go through various organizational changes whether planned or unplanned at one point during its tenure. Effective managers must be able to start, respond to, and manage changes within their organizations, whether it is as small role such as recruiting new employees or as huge as an acquisition. Because change is a process rather than an event, managers need to develop abilities in developing, leading, and moulding change processes. By disintegrating the elements of an organizational change process, a managerial program can help one build the abilities required in overseeing a transition. This may also give one the knowledge needed to tackle concerns such as how a firm gets from one point to the next, what activities workers must perform during such organizational transitions, and how to ensure that the activities are carried out.

Leading Change

Globalization has changed the universe into a global village, with an ever-increasing flow of disagreements and rivalry between corporations. As a result, the most productive strategy for any organization is developing new strategies of doing business (Treviño & Cantú, 2020). If the manager is having the necessary competency and capability as a person responsible or as an agent of change, he or she can govern a company or the company transformation process more efficiently and successfully.

Quick technological breakthroughs, high consumer expectations, and the continuously changing conditions of market have driven businesses to regularly analyze and re-assess their operations, as well as to comprehend, accept, and execute transformations in business models in reaction to shifting trends. Change management is a requirement of each day, and it is required for businesses to exist. Organizations in the present era acknowledge the importance of the issue and are constantly working in preparation not only for existing but also for emerging developments in order to achieve long-term progress. However, with all of its repercussions and relevance, the concept of organizational transformation is also a difficult and sophisticated one. According to prior studies, 70% of changes in the organization fail to achieve their objectives (Adachi et al., 2020). Because top management plays such an essential duty in the evolvement and development of a firm, the process of organizational change necessitates the presence of highly efficient and skilled management capable of recognizing the most preferable shape of a firm and addressing the concerns of organizational transformation in the most proper manner.

When it comes to implementing change, the skill of management is the most critical factor to consider. Individuals look to top management for a variety of reasons in a company where they have faith in their abilities (Mutale at al., 2017). Workers will anticipate competent and rational planning, confidence and efficient decision, and timely, thorough communicating during these difficult circumstances. Workers will also regard management as helpful, caring, and dedicated to their well-being during these periods of transition, whilst also understanding that difficult decisions must be made. Between the manager and the rest of the players, there has to be a culture of trust. The presence of this trust instils optimism for a brighter future, which makes dealing with major change much smoother.

Conclusion and Recommendations

All companies exist to fulfil specific goals or objectives, and managers are responsible for combining and utilizing organizational resources to guarantee that their companies meet their goals. Management serves as a watchdog for a collection of employees in the organisation, coordinating their efforts toward a common goal. Management practices, as a recommendation, require ongoing and persistent monitoring, development, and sufficient investment due to its significance. As a result, businesses ought to have a well-thought-out strategic vision that is conveyed to all personnel. It is critical to underline that all workers should be involved in the development and execution of strategic management processes which will equip the firm for the future, provide long-term purpose, and demonstrate the firm’s desire to become a dominant player.


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